Cable also said that a second referendum could see the initial Leave vote overturned.

“The problems are so enormous, the divisions within the two major parties are so enormous, I can see a scenario in which this doesn’t happen.

“Our policy of having a second referendum, which didn’t really cut through in the general election, is designed to give a way out when it becomes clear that Brexit is potentially disastrous.”

The UK and the EU started the formal Brexit talks last month with British Prime Minister Theresa May expecting the Brexit process to be completed by March 2019 even though the EU has warned that the two sides should reach a deal before October 2018.

May has made it clear that if the two sides miss the deadline without achieving a deal she would take the country out of the EU regardless, raising the prospects of a so-called “hard Brexit.”

Experts have warned that a hard Brexit, which among other things means losing access to the EU Single Market, would slash the UK financial industry’s revenue by £38 billion.

May, who faced strong opposition in parliament after a miscalculated call for snap general election, has been struggling to keep up with her own Brexit plans.